How to optimise HR investment in a difficult financial climate
March 15th 2023 | Posted by Phil Scott
Investing in HR is a top priority for successful organisations. This investment enables businesses to maximise the effectiveness of its greatest resource; its people.
In the current difficult financial climate, it’s more important than ever that businesses optimise their investment in HR to get the best returns in terms of performance and value.
There are steps that top performing HR managers take to ensure the best possible returns on HR investment. Let’s look at five of these steps.
Evaluate all projects at a basic level
Senior HR professionals understand the importance of knowing what each project they put forward can bring to the table. If a project does not add real value, it’s not a good use of financial resources. So, top HR managers start from the very basic level to determine if it’s something they should be promoting as a good investment. In some cases, they also revisit previous projects to determine if there is anything that can be reused, thereby optimising the original investment.
Recognise and retain talent
An HR team is only as good as its members. If the members of the team do not perform to a high standard, they will not make best use of the resources invested in them. Forward thinking HR managers recognise this and they take steps to ensure good performance from their teams. In order to do this, they recognise talented people and ensure they have the resources, support, and motivation to want to stay within the organisation.
Involve people in the work of HR
Experienced HR managers appreciate that the best way to get employees invested in HR initiatives is to involve them from the start. This involvement can take various forms including surveys, secondments, and focus groups. Getting employee buy in makes it more likely that HR initiatives are successful and that investment in them is optimised.
Ensure that HR goals match business goals
Progressive HR professionals know that the best way to optimise investment in their discipline is to align their goals with those of the business overall. They are able to show how investing in HR projects and initiatives brings direct results for the organisation. Being able to communicate this to members of the senior team is a skill and requires knowledge of business operations and how best to relate HR planning to them, in order to get senior executives on board.
Encourage an agile HR approach
Modern HR professionals know that even with the ideal amount of planning, unexpected events can cause problems. So, they build agility into their function. This agile approach involves remaining calm in the face of emergency situations and prioritising adaptiveness and speed of response. Having this approach means that even when things do not go to plan, the HR team is prepared and investment in HR is optimised.
These steps help top HR managers to optimise investment in the HR function at a time when budgets are tight. Doing this enhances their reputation within the organisation.